Hello everyone, Here is my situation. almost four years ago, I got offered a job in Europe and accepted it. I moved over and absolutely loved it and knew from that time that I wanted to say here and live. The problem is, I lost my job last year. Before I moved to Europe. My credit was good, I had gotten two apartments, never late on rent, I had three credit cards, never late on any payments. I had even gotten a small loan from my bank to buy a car, paid off, never late in fact, paid it off early. Last year when I lost my job, I had problems making ends meet. The first thing I did was call my credit card company (two are with the same company) I explained to them that I would be unable to make my minimum payments due to economic hardship. I was told that I did not qualify for their economic hardship program because I was unemployed out side of the US. I was advised to pay what ever I could afford. So I did, every month I payed what ever I could. I finally got a call from the credit card company and guy wanted to know why I wasn't making my minimum payments. I explained the situation to him and told him what the other operator advised me to do. He basically said that he had no idea why the operator told me that, that they required by law to make me pay the minimum. I explained to him that I couldn't right now. I continued paying the company what ever I could until one month, I got a call from a collections company which is when I found out they had passed my account to a collection agency. I made arrangements with the collection agency to make monthly payments.... they were willing to accept what I was able to pay unlike the bank. So now two of my three credit cards are in collections. I don't have much credit card debt but when you don't have any money and are faced with the prospect of paying rent or paying your credit card, I chose rent, and food. Both collection agencies have offered me settlements which I can't afford at the moment. However, I have finally just surrendered to the idea that I am going to have to return to the United States.... which makes all the above a real problem for me. I have nothing in the United States anymore... no car, no furniture, no job, nothing and yet I am about to have to come back and will not be able to get un-employment due to me working overseas. So now all my credit woes are really about to bit me in the rear end. The only family I really have left is my mother who has offered to let e stay with her as long as I want. But, my mother lives outside of town in the middle of know where and lives near a very small town to boot. So basically, my job prospects are slim and now the creditors will actually be able to do something to me. If I can find a job, I will not have rent, and my mother will probably not accept any utility money from me either. That will allow me to save money to get some of these debts paid off. But what I am wondering is.... Should I pay off my currant account first and then pay off the two in collections or vis versa? The credit card account I have that is currant is closed... It was jut a card I got with the bank I have my checking account with to act as an overdraft, I started having to over draft when I started have financial problems. Then as soon as my other two credit cards went to collections, my bank closed this credit account. So here is what I am trying to figure out. On this currant account, I owe $547 which I should be able to save in a month easy once I get a job, two months tops. However, the lesser credit card that is in collections, I only owe $700 or so and they have told me they are willing to offer me a settlement so this account could potentially be less depending on the settlement. The other card I have in collections wants $1,400 to settle, that will take me a few months. So my question is, which should I pay off first, the currant account that is closed or the lesser account that is in collections? I know these don't sound like big numbers to be having problems with but I have a massive student loan debt that I am behind on as well... that is way too much for me to get rid of at the moment, so I want to concentrate on getting ride of these debts so that all I have left to deal with and worry about is my student loan. Any advice would be greatly appreciated.
First off I want to say , Sorry to hear about your troubles. But as you stated and I agree with you 100% these are not big numbers, You will get pass this. The last thing to do is panic. Life will go on. Try owing a couple of million then you have to worry. Even in that case you still have options. The one thing I respect about our great country is there's no debtors jail. If there was a whole lot of people would be in jail right now because of the economic climate. I would probably try to knock out the larger debt first. You should try to call them and really talk them down on the amount. In these economy time anything is possible. Depends on the person you get or who ever is calling you. It's more of nasty phone calls and letters. And you can put an end to that with a letter telling them to stop contacting you via phone. The law does protect you. Just try to handle it as when it permits you too. You sound like an honest guy and be honest with the company your dealing with. They will work with you. No one has a money tree in the back yard. GOOD LUCK!
